Raise Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RAISE PRICE WITH NO CHANGE IN PERFORMANCE AND COST

CHOICE 2 ISOLATE SEGMENTS: CUSTOMER SEGMENTS MAKING HIGHER THAN AVERAGE USE OF CAPACITY

CHOICE 3 COMPONENT: ELIMINATE FORMS OF DISCOUNT

No. SIC Year Notes
1 3711 1993 Big Three auto makers raised their prices to daily rental companies as much as 30% for the 1993 model, and by a similar amount for the 1994 model year.
2 4512 2002 AMR corporation, American Airlines cut business fares by 43% in several of its markets and raised leisure fares at the same time. The fares are still higher than discount carrier fares but the gap has been narrowed considerably.

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